Interest rates on short-term Treasury bills fell.

The Treasury Department sold $7.6 billion in new three-month bills at an average discount rate of 5.53%, down from 5.68% last week. Another $7.6 billion was sold in new six-month bills at an average discount rate of 5.55%, down from 5.68% last week. The new discount rates understate the actual return to investors--5.69% for three-month bills with a $10,000 bill selling for $9,860.20 and 5.79% for six-month bills selling for $9,719.40. The discount rate reflects the price discount received when securities are purchased at less than face value.